China Resources Cement sales seen hitting 70Mt in 2013

China Resources Cement sales seen hitting 70Mt in 2013
Published: 27 November 2012


China Resources Cement (CR Cement) expects cement sales in 2013 to increase to 70Mt, representing a YoY rise of 5Mt. Production capacity, meanwhile, is likely to rise to 72.7Mt in 2013. The company is set to launch a 5000tpd line in Guangdong Luoding in 4Q12. As such, total clinker capacity will reach 50Mta by end 2012.

Citigroup has recently lifted its target price for CRC to HK$3.3 from HK$3, and maintained its "sell" rating. CR Cement had raised cement average selling price (ASP) from HK$285-290/t in 3Q to HK$320-330/t in October.  The house factored in lower coal cost and higher GP margin, and raised 2012 & 2013 net profit to HK$1753m and HK$1,803m. (KL)